A recent report by Transparency Market Research has put the focus on Mergers and Acquisitions for growth in the Supply Chain and logistics industries, and identified International Business Machines, Google Inc., Amazon Web Services, Infosys, Microsoft, SAP, Dynatrace, NETSUITE, Oracle, and Freightgate as the key companies in the global IoT connected logistics market.
The TMR report estimates the global connected logistics market to expand at a CAGR of 17.8 percent between 2017 and 2025. Progressing at this pace, the market's valuation will become $55.17 billion by the end of 2025.
The global market for connected logistics by service has been segmented in the report into asset management, remote asset tracking, security, network management, and data management.
Moreover, the report predicts that the Asia Pacific region will be a key place for lucrative strategic opportunities over the forecast period. North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America are the key segments of the global connected logistics market based on geography. North America currently leads the global connected logistics market vis-à-vis revenue. However, the Asia Pacific market is expected to surpass other regions in terms of growth rate over the forecast period.
Amongst several growth drivers of the connected logistics market, breakthrough development in the transportation of sensitive products such as pharmaceutical items is a key one. For instance, in the event of severe temperature fluctuations at the time of transport, the manufacturer would receive alerts and would be in a position to take action before the products gets affected.
Connected logistics have added a new dimension to the management of logistics across all industry sectors. Connected logistics involves several sensors that provide real-time information related to road conditions, weather, and shipping lane traffic when connected to internal and external data feed. The IoT is increasingly becoming central to business processes across industry verticals. With the rising prominence of internet of things in the logistics industry and the multiple applications of connected logistics in e-commerce, the global connected logistics market is receiving a fillip.
Along with this, the growing need for integrity and transparency control, which includes place, right products, on time delivery, perfect condition of the product, and product delivery at optimal cost, along the supply chain is driving the need for connected logistics. This is mainly for the transportation of delicate goods that need special monitoring at the time of transportation. Further, in logistics and e-commerce, shipment details and real time product tracking have become a necessity, which are some other factors driving the market.
Another key factor stoking growth of the global connected logistics market is need for transparency in networks and assets from logistics companies. This is mainly for optimization of network utilization and to attain maximum efficiency in the process.